Sabarmati Gas stake sale bids this month

Vol 12, PW 9 (18 Sep 08) News in Brief

Financial institutions interested in a 50% stake in Gandhinagar-headquartered gas retailer Sabarmati Gas are expected to submit bids this month.

PETROWATCH learns that state-owned investment bank SBI Capital Markets has, “invited price bids from nine short listed companiesâ€‌ and expects to receive all bids by the end of the month. “All the interested parties have carried out due-diligence,â€‌ we hear.

“Even the â€کterm-sheet’ has been negotiated.â€‌ Sabarmati Gas is a joint venture between Gujarat State Petroleum and state-owned BPCL, incorporated in June, 2006.

Today Sabarmati Gas sells around 30,000-kg/day of CNG from five CNG stations and plans to set up three more over the next three months: one in the Gujarat state capital of Gandhinagar and two in Himmatnagar. It also sells piped gas to 2000 industrial customers and factories in the towns of Kalol, Kadi, Himmatnagar and Mehsana and cooking gas to more than 10,000 households.